The Following Question Relates to PQR,which Has the Following Ratios

question 42

Multiple Choice

The following question relates to PQR,which has the following ratios: return on assets, (ROA) 10 per cent;return on equity (ROE) 12 per cent;and current ratio (CR) of 1.8:1.
-The company purchased raw materials on credit for $400 000.This transaction will:

• A) decrease ROA,ROE and CR.
• B) decrease ROA and CR,but not ROE.
• C) decrease ROA only.
• D) have no effect.

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Definitions:

Leaf

A flattened structure of a higher plant, typically green and blade-like, that is attached to a stem directly or via a stalk. Leaves are the main organs of photosynthesis and transpiration.

Guttation

The exudation of droplets of water from the pores of plants, typically occurring at night when root pressure is high and transpiration is low.

Soil Moisture

The amount of water present in the soil which is crucial for the growth of plants and the sustainability of terrestrial ecosystems.

Cactus Spines

Modified leaves or parts of leaves that have evolved into sharp structures to help reduce water loss and deter herbivores.